Sensex Ends 238 Points Higher, Nifty Near 24,000 As Profit Booking Caps Rally

Benchmark indices Sensex and Nifty pared a large part of their intraday gains on Wednesday as profit booking emerged after a strong start, although both indices ended in the green with support from broader markets and gains across most sectors.

The Sensex settled 238.22 points, or 0.31%, higher at 76,741.82 after giving up nearly 600 points from the day's high. The Nifty 50 rose 80.75 points, or 0.34%, to close at 23,962.80, ending just below the 24,000 mark.

Market breadth remained strong, with 2,793 stocks advancing, 1,263 declining and 167 remaining unchanged.

Broader markets outperformed the benchmark indices. The Nifty Midcap 100 gained 1.4%, while the Nifty Smallcap 100 advanced 1.8%, reflecting continued buying interest beyond large-cap stocks.

Profit Booking Caps Intraday Rally

The benchmark indices witnessed profit booking after rallying nearly 1% during the session, resulting in a sharp pullback from intraday highs.

Despite the late-session selling, sectoral performance remained largely positive. Nifty Realty emerged as the top performer, rising 3.5%, followed by Nifty Media (2%), Nifty PSU Bank (1.6%) and Nifty Consumer Durables (1.6%).

Among the laggards, Nifty IT slipped 0.47%, while Nifty Auto declined 0.25%.

Among Nifty stocks, Sun Pharma gained 2.6%, followed by Bharti Airtel (2.2%), InterGlobe Aviation (2%), Eternal (2%) and Kotak Mahindra Bank (1.9%). Dr Reddy's Laboratories was the biggest loser, falling 5.9%, while Infosys, Maruti Suzuki, NTPC and ONGC also ended lower.

Geopolitical Tensions Remain In Focus

Investor sentiment remained cautious amid renewed geopolitical tensions in the Middle East.

Oil prices fluctuated as traders assessed the outlook for crude supplies following fresh hostilities between the US and Iran. Brent crude traded below $78 a barrel after rising more than 5% in the previous session, while West Texas Intermediate hovered near $73.

The latest escalation came after US forces conducted a second day of strikes against Iran, while Iranian state media reported attacks on American military bases in the region. The evolving situation has renewed concerns over potential disruptions in the Strait of Hormuz, a key global oil shipping route.

Meanwhile, the Indian rupee recovered from recent losses, ending 17 paise stronger at 95.38 against the US dollar, compared with the previous close of 95.55.

Recovery Supported By Domestic Factors

Vinod Nair, Head of Research at Geojit Investments, said the market staged a moderate recovery despite lingering geopolitical uncertainties.

"Indian equity markets staged a moderate rebound, aided by supportive global cues, though investors remained watchful of the geopolitical developments that had triggered the last trading day's sell-off. The recovery was led by mid- and small-cap stocks, with realty and PSU banks bouncing back strongly after their recent correction. Domestically, sentiment remains relatively resilient, underpinned by an improved outlook for H2, a recovery in rainfall conditions, and better valuation levels. That said, the latest US Fed minutes flagged renewed inflation concerns, which could weigh on the performance of the global market," he said.